Happy New Year!
Last year (2015) likely will represent the top for the bull market that began in 2009. Stocks finished the year down, representing the first down year since the March 2009 bottom.
Many analysts will point to the August sell-off as the reason stocks performed so badly, however, looking at the chart, stocks struggled throughout the year, long before the August sell-off. Indeed, at best the S&P 500 was up 3% for the year!
Things are only going to worsen from here.
Firstly, the US Federal Reserve is now tightening. From 2009-2015, the Fed was always implementing loose monetary policies whether it by through QE, Operation Twist, or simply juicing the markets during options expiration weeks.
No longer. The Fed is now raising rates. This will be a major issue for stocks going forward.
Secondly, the US economy is back in recession.
Things are only going to worsen from here.
Firstly, the US Federal Reserve is now tightening. From 2009-2015, the Fed was always implementing loose monetary policies whether it by through QE, Operation Twist, or simply juicing the markets during options expiration weeks.
No longer. The Fed is now raising rates. This will be a major issue for stocks going forward.
Secondly, the US economy is back in recession.
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